Resisting pressure from Trump, two major U.S. energy giants refuse to increase oil production.

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Facing the most severe energy crisis in decades, America's two major energy giants, ExxonMobil and Chevron, are resisting pressure from the White House to increase oil output, steadfastly adhering to their pre-crisis strategies that prioritize financial returns over production growth.

According to the Financial Times, despite U.S. President Trump's recent calls for the oil industry to ramp up drilling, both companies' CFOs have made it clear they will not alter their core business plans due to recent oil market turbulence. Company leadership stresses the current strategic focus remains on expanding free cash flow, rather than simply increasing capacity.

The Iran war has significantly cut Gulf region oil production and hit refining operations in the Middle East and elsewhere, triggering an energy shock that could worsen global inflation. International oil prices have soared to $126 per barrel, the highest since the conflict began, and U.S. gasoline prices have risen above $4 per gallon, directly undermining Trump's campaign promise to lower oil prices below $2 and reduce living costs.

To ease supply shortages, the U.S. government has ordered the release of strategic oil reserves. Meanwhile, although oil companies have rejected calls to ramp up upstream production, they are leveraging the windfall from high prices for diesel and other refined products, running their refineries at record utilization rates to maximize capital returns amid market volatility.

Sticking to established strategies, refusing to change plans for a short-term crisis

Responding to government calls, both giants say their operating plans in key regions remain unchanged. ExxonMobil CFO Neil Hansen told the Financial Times the company’s strategy in the dominant U.S. oil and gas region, the Permian Basin, “has not changed.” He noted, “We really don't need to shift gears because we're already operating at high speed. That doesn’t mean we haven’t assessed expansion potential, but there are objective constraints.”

Chevron CFO Eimear Bonner likewise emphasized to the Financial Times, “The crisis hasn’t prompted us to change any plans.” She stated clearly that Chevron has the capacity to grow in the Permian Basin, but this is not the company’s set strategy, which is centered on growing free cash flow, not output. Bonner added, “People shouldn’t expect us to radically change plans just because of an eight-week supply disruption.”

Financials dragged down by hedging, companies emphasize resilience

First quarter financial data released Friday show both companies' profits were significantly dragged down by hedging losses on undelivered shipments. As of the end of March, ExxonMobil posted net profits of $4.2 billion, down 46% year-on-year, mainly due to $3.9 billion in marked losses. The company expects these mismatches will resolve naturally as contracts are fulfilled in coming months.

Despite the drop in profits, ExxonMobil announced it will pay a second-quarter dividend of $1.03 per share. CEO Darren Woods sought to reassure investors in a statement: “This quarter shows ExxonMobil is a stronger company than it was a few years ago, built to withstand business disruptions and navigate market cycles of all kinds.”

By contrast, Chevron, with less risk exposure, reported first-quarter net profit of $2.2 billion, down 37% year-on-year, including $2.9 billion in marked losses.

Geopolitical shocks hit production, capacity consolidation and refining in focus

This geopolitical crisis has affected the global supply chains of different oil companies in varying ways. ExxonMobil has the highest risk exposure to the Middle East crisis, with operations in the UAE and Qatar accounting for 20% of last year's total oil output. The company warned in April that the Middle East conflict would cause about a 6% loss in its first-quarter global production.

Chevron’s output performance has benefited from prior mergers and consolidation. Financial reports show that, thanks to integrating the U.S. oil and gas producer Hess and increased production from the “Gulf of America” and Permian Basin, Chevron’s daily production rose by 500,000 barrels compared to the first quarter of 2025.

Significantly, Chevron CEO Mike Wirth met this week with Trump alongside other senior executives. Despite direct pressure from Washington, neither energy giant has made concessions on oil extraction, instead opting to run their refineries at full capacity in hopes of locking in high profits from refined products amid the current energy shock.

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